The Ministry of Corporate Affairs (MCA) on 22 October 2019 notified the: (1) Companies (Appointment and Qualification of Directors) Fifth Amendment Rules, 2019; (2) Companies (Creation and Maintenance of Data Bank of Independent Directors) Rules, 2019; and (3) Companies (Accounts) Amendment Rules, 2019. The substantive provisions of each of the rules came into force from 1 December 2019.
Section 150 of the Companies Act, 2013 provided that the central government would take steps to create a centralized data bank of individuals who were qualified and willing to act as independent directors for Indian companies. The data bank was meant to serve as a reference point for individuals who can serve on their boards.
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